Libya and the World in 2011: A Higher Calling

On February 21, 2011, Libyan military aircraft fired live ammunition at crowds of anti-government protesters in Tripoli. "What we are witnessing today is unimaginable," said Adel Mohamed Saleh, an activist in the capital. "Warplanes and helicopters are indiscriminately bombing one area after another. There are many, many dead." Arabiya television put the number killed on that day alone at 160. Gadhafi's son had vowed on television the day before that his father and security forces would fight "until the last bullet." I suspect that few people were surprised to find that Gadhafi would mount a sustained vituperative effort against the pro-democracy movement that was sweeping through the Middle East. "These really seem to be last, desperate acts. If you're bombing your own capital, it's really hard to see how you can survive, " said Julien Barnes-Dacey, Control Risks' Middle East analyst. "But I think Gaddafi is going to put up a fight ... in Libya more than any other country in the region, there is the prospect of serious violence and outright conflict," he said. As the world received reports of the massacre, a latent question not being asked was whether the world (or even a coalition therein in case of a holdout like China) has the right or an obligation to intervene militarily to stop the offending regime against its own defenseless people. I contend that there is such a right and moral obligation--meaning that national sovereignty does not extend to crimes against humanity. Sadly, at the time of the Libyan protests and Gaddafi's retaliation, the world's government offiicals were still largely impotent and disorganized.

The full essay is at "Libya and the World in 2011."

Source:

"Gadhafi: 'I'm in Tripoli, not Venezuela," February 22, 2011. NBCNews.com.

Prohibiting Interracial Marriage: Testing the Limits of Tolerance in a Federal Empire

In October, 2009, it was widely publicized in the press that a justice of the peace in Louisiana had been refusing to marry interracial couples (what if both people are multiracial?). He was subsequently fired. Keith Bardwell, justice of the peace in Tangipahoa Parish, said it is his experience that most interracial marriages do not last long. "I do ceremonies for black couples right here in my house," Bardwell said. "My main concern is for the children." As astounding as this sounds in the twenty-first century in a modern society, the case demonstrates the thesis that an empire, or Union of many States, is inherently diverse--incredibly diverse in fact. Europeans tend to view the United States as though it were itself akin to a state (i.e., homogeneous). In truth, the United States are indeed as diverse as is the European Union (language is not the only basis of diversity).  A person in Boston reading a newspaper about the justice in the peace in Louisiana could be excused for thinking for a moment that Louisiana is another country. To be sure, the large states in the U.S. are equivalent in size to the large member-states in the E.U. Territory does matter in terms of cultural diversity.

The full essay is at Essays on Two Federal Empires.

Employing Smokers: Economic, Political and Social Aspects

Hospitals in Florida, Georgia, Massachusetts, Missouri, Ohio, Pennsylvania, Tennessee and Texas (among others), stopped hiring smokers in 2010 and more countries were openly considering doing so. Paul Terpeluk, a director at the Cleveland Clinic in Ohio, said, “The trend line is getting pretty steep, and I’d guess that in the next few years you’d see a lot of major hospitals go this way.”[1] Indeed, this could come to be the case around the world. Various factors impact any comprehensive evaluation of a hospitals' policy against hiring smokers. The matter is therefore more complex than one might assume at first glance.
 

The full essay is in Cases of Unethical Business: A Malignant Mentality of Mendacity, available in print and as an ebook at Amazon.

1. A. G. Sulzberger, “Hospitals Shift Smoking Bans to Smoker Ban,” The New York Times, February 10, 2011.

South Sudan as a Sovereign State: Governmental Change in Slow Motion

Announced in Sudan’s capital, Khartoum, on February 7, 2011, voters in the oil-producing south overwhelming chose to secede from the Arab north. According to the New York Times, 98.83 percent of the more than 3.8 million registered voters in the south chose to separate from the north. The referendum had been agreed to as part of the peace agreement in 2005, after two long and brutal civil wars between the Arab Muslim north and the mostly animist and Christian south. “Today we received these results and we accept and welcome these results because they represent the will of the southern people,” President Bashir said in a statement on state television, according to Reuters. In Washington, the White House released a statement by President Obama congratulating the people of south Sudan and announcing “the intention of the United States to formally recognize southern Sudan as a sovereign, independent state in July 2011.” The New York Times reported that actual independence would be declared on July 9, when the peace agreement that set the stage for the vote expired. In the meantime, issues regarding citizenship, oil-revenue rights and the contested and volatile region of Abyei would be settled.

The full essay is at "South Sudan."

Efficiency, Corporate Social Responsibility and Full Employment: Squaring a Circle

The New York Times reported that President Obama urged American businesses on February 7, 2011 to “'get in the game' by letting loose trillions of dollars being held in reserves, saying that they can help create a 'virtuous cycle' of more sales, higher demand and greater profits that will put people back to work and turn around the sluggish economy.” Obama continued, “If there is a reason you don’t believe that this is the time to get off the sidelines — to hire and invest — I want to know about it. I want to fix it.” In the speech at the U.S. Chamber of Commerce, Mr. Obama said that companies have a responsibility to help the economy recover. The trouble is that responsibility is a rather vague term that can be variously applied. This is one reason why the corporate social responsibility concept could mean providing society with the products and services that are sought via the marketplace (e.g. Milton Friedman of the Chicago school) while meaning for others increasing corporate philanthropy to alleviate a society problem such as poverty. In other words, responsibility can be made concrete in various ways that can accommodate and indeed reflect the ideologies of those applying the term.

The full essay is at "Efficiency and CSR."

Coordinating Fiscal and Monetary Policy in the E.U.: Is Ever Closer Political and Economic Union Advisable?

Initiating a bold effort on February 4, 2011 at a summit of the European Council (composed of heads of the state governments) to strengthen the euro by coordinating fiscal policies among the 17 states that use the currency, the German Chancellor and French President laid down far-reaching plans to deepen economic and political integration for the group of states within the EU. From the standpoint of the US, a subset of states relatively integrated federally seems strange, though perhaps such flexibility will obviate a war between EU states in the future. In other words, Americans ought not dismiss the arrangement out of hat. This is not to say that bringing fiscal policy up to the EU level to join monetary policy will be easy, even for just seventeen states.  The particular interests of the latter must be balanced against the interest of the ECB (the EU's central bank) for some degree of fiscal coordination and accountability.

The complete essay is at Essays on Two Federal Empires.

The U.S. Senate on Health Insurance Reform: On the Applicability of the Bundesrat and the E.U.'s Council of Ministers

A second federal judge ruled at the end of January, 2011 that it is unconstitutional for Congress under the interstate commerce clause of the U.S. Constitution to enact a health care law requiring Americans to purchase health insurance. Unlike the Federal judge in Virginia who had ruled against the law the month before, Judge Roger Vinson of Federal District Court in Pensacola, Fla., concluded that the insurance requirement was so “inextricably bound” to other provisions of the Affordable Care Act that its unconstitutionality required the invalidation of the entire law.  Such an invalidation would of course be in the interest of the health-insurance industry lobby; the managers of health insurance companies are opposed to providing expanded coverage to the uninsured without the mandated expanded pool that would spread out the risk. One might wonder whether the lobby has any muscle with the Federal courts.  Nonetheless, I want to raise another point that may have been missed from all the tussle over the jurisprudence. Specifically, 26 states were parties to the legal challenge in Pensacola. That is to say, more than half of the state governments were opposed to the Affordable Care Act.  It is notable, therefore, that the U.S. Senate, which represents the States and was intended to give them a direct agency in the general (or federal) government, passed the Act by 60 votes in favor.  

The full essay is at Essays on Two Federal Empires.

A Yale College Dean Functioning as a Government Official

A fraternity at Yale had its new members chat “no means yes”…meaning that if a woman says no, she means yes…in pledging during the Fall of 2010.  The dean of Yale College asked the college’s executive committee to look into the matter.  This seems to me to evince a penchant for bureaucracy for its own sake. 

The full essay is at "A Yale College Dean."

Relegating a State as Bankrupt in U.S. Court: The Problem of Federalism

David Skeel suggests that a new chapter should be created in U.S. bankruptcy law to cover state governments. This is not without problems, however.  Skeel states that the "main objection to bankruptcy for states is that it would interfere with state sovereignty—the Constitution’s protections against federal meddling in state affairs.”  He does not see this as a major hurdle, whereas I do. Whereas he, as a lawyer, is looking narrowly at bankruptcy and constitutional law, I am looking more long term at the trajectory of federalism succumbing to consolidation.

The full essay is at Essays on Two Federal Empires."

The Federal Reserve to Buy More U.S. T-Bills but No State Debt

According to The New York Times, “At their first meeting of the year, Federal Reserve policy makers voted unanimously … to continue the central bank’s controversial $600 billion plan to spur the recovery by buying government bonds.”[1] In other words, the central bank would continue to “print money” to buy up U.S. Government debt, allowing that government to go into more debt without putting pressure on the interest rate to go up (which would cost the government more in interest payments to bondholders).

The full essay is at "The Federal Reserve."

1. Sewell Chan, "Fed to Continue Bond Buying Program," The New York Times, January 26, 2011.

Amid Record Bonuses Goldman Sachs Enabled Greek Debt

The person who has the gold makes the rules.  I suspect this is the operating mantra at Goldman Sachs even after the bank’s near-death experience (when Solomon Bros stock was taking a hit, Blankfein knew his bank could be next).  As it turns out, the bank was involved in enabling Greece to stealthily spend beyond its means. Just after Greece had been admitted to Europe’s monetary union, Goldman helped the government quietly borrow billions, people familiar with the transaction said. That deal, hidden from public view because it was treated as a currency trade rather than a loan, helped Athens to meet Europe’s deficit rules while continuing to spend beyond its means. Additionally, in late November, 2009— three months before Athens became the epicenter of global financial anxiety — a team from Goldman Sachs arrived in Athens with a very modern proposition for a government struggling to pay its bills, according to two people who were briefed on the meeting. The bankers, led by Goldman’s president, Gary D. Cohn, held out a financing instrument that would have pushed debt from Greece’s health care system far into the future, much as when strapped homeowners take out second mortgages to pay off their credit cards.[1]

The full essay is in Cases of Unethical Business, available in print and as an ebook at Amazon.com.  

1. Louise Story, Landon Thomas, Jr., and Nelson D. Schartz, “Wall St. Helped to Mask Debt Fueling Europe’s Crisis,” The New York Times, February 13, 2010.

The European Union: Dissolution or Consolidation?

In its 1993 Maastricht decision, the German Constitutional Court ruled that national authorities are not bound to respect and apply Community law to the extent that it exceeds the outer boundaries of Germany’s transfer of sovereignty to the E.U.  The Court also ruled that no transfer of sovereignty is valid to the extent that it results in a violation of the fundamental individual rights guaranteed in the German Constitution.  Nevertheless, a subsequent ruling on this subject indicated a willingness to rely on the European Court of Justice (ECJ) for the vindication of those fundamental rights.

The complete essay is at Essays on Two Federal Empires.

On the Merger of Comcast and NBC: A Structural Conflict of Interest

On January 18, 2011, Comcast received government approval to acquire NBC Universal. This followed a lengthy review, which mandated a list of conditions. The most important of them is aimed at preventing the new media conglomerate from thwarting competition in online video. However, even though regulators described their review as the most intense scrutiny ever for a planned media merger, Comcast managers said they believed their company faced few onerous restrictions from the review. “I don’t think any of the conditions are particularly restrictive,” said David L. Cohen, executive vice president of Comcast.[1] This statement ought to give readers some pause.

The full essay is at Institutional Conflicts of Interest, available in print and as an ebook at Amazon.

1. Tim Arango and Brian Stelter, "Comcast Receives Approval for NBC Universal Merger," The New York Times, January 19, 2011.

The Revolving Door: A Public-Private Sector Conflict of Interest

In Illinois, at least as late as 2011, state and local legislators could use their position to benefit paying clients. According to The New York Times, fourteen elected officials in Cook County, where Chicago is located, were registered as lobbyists in the 2009-2011 period and had clients who did received government contracts in Illinois. Rep. Fred Crespo observes, “When I see them [the law makers] at a hearing in the Capitol, I often can’t tell of they’re here for their constituents or for their paying clients.” Legislators in Illinois “can legally vote and otherwise act on matters that directly benefit their lobbying clients.”[1] As this involves a conflict of interest, which is inherently unethical, this case demonstrates for us the contention of ethicists that ethics as a field is distinct from law.

The full essay is at Institutional Conflicts of Interest, available in print and as an ebook at Amazon.

1. Mike McIntire and Michael Luo, “When Santorum Left Senate, Some He Aided Found Him Work,” The New York Times, January 6, 2011; John Sullivan and Fredric Tulsky, “When Office Holders Also Represent Clients, Collisions Are Likely,” The New York Times, January 6, 2011; and Fredric Tulsky and John Sullivan, “Is It a Conflict? Yes, But It’s Legal,” The New York Times, January 6, 2011. 

The E.U.'s Dire Political Problem Obscured by the Banking Crisis

In December, 2010, E.U. leaders agreed to propose an amendment wherein the financial emergency rescue fund would be replaced with a permanent crisis-finance program. The amendment would permit the States having the euro as currency to establish a "mechanism" if it is "indispensible" for the health of the euro.  Interestingly, all of the 27 State legislatures would have to ratify the amendment, though no referenda would be required on account of the amendment being of insufficient scope to trigger them.

The full essay is at "Essays on the E.U. Political Economy," available at Amazon.